Investor Presentation June 2020 Africa’s Global Bank
Outline 04 Introduction to UBA 13 Operating Environment 19 Financial Performance Outlook/Guidance 30 Appendix 33 2
Disclaimer & Caution Regarding Forward-Looking Statements • IMPORTANT: From time to time, the Bank makes written and/or oral forward looking statements. These are included in this presentation and in other communications. In addition, representatives of the Bank may make forward looking statements orally to analysts, investors, the media and others. Forward looking statements include, but are not limited to, statements regarding the Bank’s objectives and priorities for 2020 and beyond, strategies to achieve them, as well as the Bank’s anticipated financial performance. Forward looking statements are typically identified by words such as “will”, “should”, “believe”, “expect”, “anticipate”, “intend”, “estimate”, “may” and “could” . • By their very nature, these statements require the Bank to make assumptions and are subject to inherent risks and uncertainties, general and specific. Especially in light of the uncertainty related to the financial, economic and regulatory environments, such risks and uncertainties, many of which are beyond the Bank's control and the effects of which are difficult to predict, may cause actual results to differ materially from the expectations expressed in the forward-looking statements. Risk factors that could cause such differences include: credit, market (including equity, commodity, foreign exchange, and interest rate), liquidity, operational, reputational, insurance, strategic, regulatory, legal, environmental, and other risks. All such factors should be considered carefully, as well as other uncertainties and potential events, and the inherent uncertainty of forward looking statements, when making decisions with respect to the Bank, and we caution readers not to place undue reliance on the Bank’s forward looking statements. • Any forward looking statements contained in this presentation represent the views of management only as of the date hereof and are presented for the purpose of assisting the Bank’s investors and analysts in understanding the Bank’s financial position, objectives, priorities and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. The Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf, except as required under applicable securities legislation. • Other than the financials of the Bank, the information used in the presentation is obtained from several sources the Bank believes are reliable. Whilst UBA has taken all reasonable care to ensure the accuracy of the information herein, neither UBA Plc nor its subsidiaries/affiliates makes representation or warranty, express or implied, as to the accuracy and correctness of the information, Thus, users are hereby advised to exercise caution in attempting to rely on these information and carry out further research before reaching conclusions regarding their investment decisions. Notably, this presentation is not recommendation or research report and neither UBA Plc nor its employees can be held responsible for any decision made on the basis of this presentation. Thus, readers are advised to conduct due diligence or seek expert opinion before making any conclusion on the securities issued by UBA Plc. This presentation cannot be circulated to a third party without the written permission of UBA Plc. Page 3
Introduction to UBA Our Strategic Focus
We are Africa’s Global Bank Our Vision To be the undisputed leading and dominant financial services institution in Africa. Our Mission To be a role model for African businesses by creating superior value for all our stakeholders, abiding by the utmost professional and ethical standards, and by building an enduring institution. Core Values Enterprise, Excellence and Execution (the EEEs)
Footprint Across Africa A Leading Full-Service Benin Chad Burkina Faso Pan-African Banking Franchise DR. Congo Uganda Mali With a 71-year history , UBA is one of the Senegal strongest and most recognised banking Guinea brands to originate from Sub-Sahara Africa. UBA has growing operations in 20 African Sierra Leone Kenya countries, the UK, USA and France Liberia Tanzania Cote D’ Ivoire Our Strategic Levers Ghana Nigeria (HQ) Cameroon Innovation Customer-first Process philosophy Gabon Technology Financial People Mozambique inclusion Zambia Rep. of Congo I n t r o d u c t i o n t o U B A Page 6
UBA at a Glance Footprint /Channels 20 18 million+ 20,000+ 1,000+ 2,561 24,947 7 million Branches ATMs PoS Debit/Credit African Countries Customers Staff* Cards + London New York Paris Financial Highlights CAR 23.4% ₦ 5.6tn ₦ 3.8tn ₦ 2.1tn ₦ 111bn ₦ 560bn ₦ 598bn LR 54.9% [USD15.4bn] [USD1.5bn] [USD306.4mn] [USD1.6bn] [USD10.5bn] [USD5.7bn] NIM 6.0% 19% 14% 20% 15% 13.3% 4% ROE 16.2% Assets Deposits Loans PBT Earnings Equity Profitability Risk appetite Funding, Liquidity & Capital Asset Creation and Quality ₦ 5.6 trillion total assets ▪ Strong, stable CASA funding of 74% Moderate risk appetite, with a good balance ▪ Annualised RoAE of 16.2% ▪ ▪ Loan book focused on corporate, Relatively low cost of funds at 4% ▪ between profitability and sustainability ▪ Annualised RoA of 1.7% ▪ commercial and retail customers Headroom for lower CoF, on Well diversified loan book across sectors and ▪ Notable upside to NIM (6.0%), on the back ▪ ▪ Geographic, sector and customer aggressive retail penetration ▪ markets of balance sheet efficiency diversification, with less vulnerability to Liquid balance sheet to fund Relatively low exposure to volatile sectors and ▪ Cost-to-Income ratio of 62.7% ▪ ▪ macro and market volatilities emerging opportunities segments of the market Profitability built on sustainability and long ▪ NPL ratio at 5.1% Strong BASEL II CAR at 23.4% ▪ Strong governance structure and oversight ▪ term value creation ▪ *direct and support staff I n t r o d u c t i o n t o U B A 2019FY Audited Results Page 7
UBA’s Credit Ratings National National National International • Short-term: F1+ (nga) • Short-term: AA- • Short-term: A1+ (NG) • Long-term: B- • Long-term: AA- (nga) • Long-term: AA - NG) International International • Long-term: B+ • Short-term: B • Long-term: B Note: S&P and Fitch assigned Credit Rating of “ B- ” and “B” on the Nigerian Sovereign; thus the ratings of UBA from S&P and Fitch ranks at par with the Nigerian Sovereign rating and these are the highest ratings for any Nigerian corporate, as the Sovereign rating underpins the ratings of corporates operating in the country. I n t r o d u c t i o n t o U B A Page 8
Our ESG/Sustainability Profile Impact Areas Our ESG Practices are guided by the following standards: 1. The Nigerian Sustainable Banking Principles (NSBP) The Gender Financial Health Infrastructure 2. The Equator Principles Education Environment inclusiveness Inclusion 3. The Sustainable Development Goals (SDGs) Our Achievements 4. World Bank Group Environmental, Health, and Safety Guidelines • UBA to become 100% paperless banking environment by end of 2020 • Through our retail & SME banking propositions, we are helping 5. The Environmental and Social Performance Standards of the IFC families in Africa fight and achieve financial independence • We equip small businesses with skills, funding and mentorship, creating jobs and supporting local economies The UBA Group’s ESG credit evaluation • Women account for 21% and 46% of our Management and process includes an assessment of large workforce respectively. corporate borrowers with respect to: • UBA Medical loan offers funding to health sector SMEs of up to N50 ✓ Governance Million to a single customer, for up to 3 years tenor ✓ Environmental, health and safety • UBA Connect promotes intra-African trade and seamless business management processes connections in Africa ✓ Social aspects including human and • Through UBA Foundation, we promote education and knowledge in labour rights the continent via the ‘Read Africa’ platform ✓ Potential controversies • UBA rallies stakeholders to fund infrastructure projects across Africa I n t r o d u c t i o n t o U B A Page 9
Corporate Social Responsibility Education Empowerment Environment Special Projects* N334.6 N115.9 N41.7 N260.8 million million million million FY2019 CSR Spend: N752.82m Through its special purpose CSR vehicle, UBA Foundation, the Group donated N752.8million in 2019 across its four cardinal focus areas. UBA National Essay Competition and the UBA Foundation’s ‘ Read Africa ’ are resounding successes in terms of impact on educational development of our youth across Africa. * Projects in the health sector , security and support to institutions with substantial societal impact I n t r o d u c t i o n t o U B A Page 10
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